Spreads
Spreads
Spreads
Spreads
Spreads
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
EUR/USD Rebounds on Weaker Dollar, Eurozone PMI Impact, and Upcoming Central Bank Speeches
The EUR/USD exhibited a rebound, finding support above the 200-day Simple Moving Average and driven by a weakened US Dollar. The recovery from the 1.0800 level has brought the pair to test the 1.0870 area, although the overarching trend remains downwards. The Euro’s decline was initially triggered by the Eurozone’s preliminary August PMI figures, with the Composite dropping from 48.6 to 47, indicating contraction. Surprisingly, Services PMI dipped to 48.3 while Manufacturing PMI rose to 43.7. This data has dampened expectations for a September rate hike from the European Central Bank (ECB), influencing the Euro’s performance.
In the US, Wednesday’s data revealed a drop in the S&P Global Composite PMI from 52 to 50.4, with Manufacturing PMI falling to 47, contrary to expectations. The Services PMI also slipped from 52.3 to 51. These figures led to losses in the US Dollar, prompting a corrective movement. Additionally, US Treasury yields retreated, contributing to a weakened Dollar and aiding the EUR/USD pair’s rebound. Looking ahead, attention remains on the Jackson Hole Symposium, particularly speeches by Fed Chair Powell and ECB President Lagarde on Friday, even as Thursday’s data includes weekly Jobless Claims and Durable Goods Orders.
According to technical analysis, the EUR/USD moved higher on Wednesday and managed to reach the middle band of the Bollinger Bands. Currently, the price is slightly below the middle band of the Bollinger Bands. The Relative Strength Index (RSI) currently stands at 47, indicating that the EUR/USD is currently back in a neutral mode.
Resistance: 1.0935, 1.1038
Support: 1.0837, 1.0789
XAU/USD Surges as Dollar Softens Amidst Retreat in Yields and Positive Asian Markets
On Wednesday, spot gold experienced a notable shift, surging towards the $1,920 price range. The US Dollar exhibited a weakened stance through the first half of the day, influenced by declining government bond yields. Despite negative cues from American stock markets, Asian markets demonstrated resilience and moved higher.
European indices maintained an optimistic outlook despite unfavorable news for the Euro Zone. S&P Global’s preliminary August PMI estimates indicated a much worse situation than anticipated, revealing the region’s fastest contraction in business activity in over two years. The USD’s decline continued after the release of US figures, where the Manufacturing PMI reached a two-month low of 47.0, and services output dropped to a six-month low of 51.0. American stocks held their ground in positive territory, while Treasury yields retreated further, with the 10-year Treasury note now offering 4.20%, down by 12 basis points (bps).
Based on technical analysis, the XAU/USD moved higher on Wednesday and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving just around the upper band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 67, indicating that the XAU/USD pair is now in bullish mode.
Resistance: $1,926, $1,945
Support: $1,910, $1,896
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
